PHI GROUP, INC. Reports Q3 FY'09 Financial Results

LOS ANGELES, CA--(Marketwire - May 20, 2009) - PHI GROUP, INC. (OTCBB: PHIE) (FRANKFURT: PR7) (WKN A0RNQV), a company engaged in mergers and acquisitions, real estate development, mining, and investing in special situations, today announced financial results for the third quarter of fiscal year 2009, ended March 31, 2009.

Total revenues were $6,000 and $31,000 for the three months ended March 31, 2009, and 2008, respectively from management services and consulting services. Total revenues were $2,000,220 and $705,338 for the nine months ended March 31, 2009, and 2008, respectively. We generated $1,982,220 revenues from consulting services and $18,000 for management fees for the nine months ended March 31, 2009 compared to $639,838 for consulting fees and $65,500 for management fee in the nine month ended March 31, 2008.

Total operating expenses were $264,893 and $318,066 for the three months ended March 31, 2009, and 2008, respectively. Total operating expenses were $1,091,508 and $984,641 for the nine months ended March 31, 2009 and 2008, respectively.

Net loss for the three months ended March 31, 2009 was $675,926 as compared to $276,772 for the same period in 2008, which is equivalent to $(0.00) per share for both periods, and net loss for the nine months ended March 31, 2009 was $1,444,123 compared to $386,230 for the same period in 2008, which is equivalent to ($0.01) per share in the nine months ended March 31, 2009 and ($0.00) in 2008, all based on the weighted average number of basic and diluted shares outstanding. The increase in net loss for the last nine months was mainly due to an increase of $2,361,065 in loss on the sale of marketable securities offset by an increase of $133,757 in gain on debt settlement which were not present during the corresponding period in 2008.

PHI GROUP's CEO Henry Fahman said, "The revenues for the third quarter and nine month periods were low due to the nature of our revenue recognition methods. Since the bulk of our compensations from merger and acquisition consulting services is in the form of equity ownership in our client companies and transactions have both a long sales cycle and take a while to complete, our quarterly revenue stream is uneven. However, when these transactions are completed the revenues will be reflected in the relevant periods."

Henry added: "On another note, during the last quarter we devoted significant efforts to update the paperwork for the listing of our Philand Ranch's stock on the Frankfurt Stock Exchange, secure the new mining projects in Cambodia and reach an agreement to recapitalize Phuong Nam Co. in Vietnam. We are confident all these activities will generate significant results for our shareholders in the near future."

About PHI GROUP, INC.

PHI GROUP, INC., formerly known as Providential Holdings, Inc., focuses on M&A and consulting services, real estate development, mining and investing in special situations. The Company assists companies to go public and raise capital, develops "Pointe 91," a luxury resort and premium residential community in Chu Lai, central Vietnam, (www.philandranch.com), and engages in mining in Southeast Asia (www.phimining.com). The Company's main web site address is www.phiglobal.com.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact Information: Henry Fahman Tel: 714-843-5455